Exhibit 10.3                                                     1


                      MODIFICATION OF EMPLOYMENT AGREEMENT

     This  Agreement  made  this  29th  day of  January,  2003  by  and  between
Manchester  Technologies,   Inc.  (f/k/a  Manchester  Equipment  Co.,  Inc.),  a
corporation  maintaining  its  principal  place of business at 160 Oser  Avenue,
Hauppauge,  New York,  hereinafter  called  the  "Employer",  and Joel  Stemple,
residing at 35 Hamlet Drive, Hauppauge,  New York 11788,  hereinafter called the
"Employee".

     WHEREAS,  the Employer and the Employee entered into a certain agreement of
employment on September 30, 1996, and

     WHEREAS,  the term of said Employment  Agreement  expired on July 31, 2001,
and  was  renewed  for  an  additional  year  to  July  31,  2002  with  certain
modifications, and

     WHEREAS,  the  Employer  and the  Employee  desire  to  extend  the term of
employment through July 31, 2004 with certain  modifications as set forth in the
within agreement,

     NOW,  THEREFORE,  in  consideration  of the  mutual  covenants,  terms  and
conditions contained herein, it is agreed as follows:

1.   Paragraph  4 (Term)  of the  Employment  Agreement  is  herein  amended  as
     follows: "The Employer hereby engages the Employee to perform the duties as
     set forth in the  Employment  Agreement of September  30, 1996 for a period
     commencing as of August 1, 2002 and ending July 31, 2004."

2.   Paragraph 6 (Compensation)  is herein amended as follows:  "As compensation
     for his services as aforesaid,  and as salary in connection with the duties
     to be performed by the Employee, the Employer shall pay to the Employee the
     salary  as  hereinafter  set  forth,  such  sums to be  paid  in  bi-weekly
     installments:


<PAGE>


          August  1,  2002 - July  31,  2003 -  $225,000.00  per  annum  payable
     $8,653.84 on a bi-weekly basis.

          August  1,  2003 - July  31,  2004 -  $225,000.00  per  annum  payable
     $8,653.84 on a bi-weekly basis."

         3. Paragraph 6 (d) (Compensation) is herein amended as follows:

          (d) "As  additional  compensation  for the  performance  of his duties
     hereunder,  the Employee  shall be entitled to sixty (60) "PAL" days during
     each year of the term of the  within  agreement,  pursuant  to the  present
     Employer's Program for "PAL".

     4.  Paragraph 7  (Disability  Provisions)  of the  Employment  Agreement is
herein amended as follows:

          a. The following  provision is deemed as an addition to the provisions
     of paragraph 7 (a) -

          "In the event total  disability  should  occur with less than 180 days
     remaining in the term of  employment,  the "full salary"  provisions of the
     within paragraph shall be limited to the number of days actually  remaining
     in the term of employment."

          b. The following  provision is deemed as an addition to the provisions
     of paragraph 7 (b) - "In the event such total  disability  should  continue
     for a period  longer than 180 days,  the "75% of salary"  provisions of the
     within paragraph shall be limited to the number of days actually  remaining
     in the term of employment.

     5.  Paragraph  8 (b) of the  Employment  Agreement  is  herein  amended  as
follows:

     The  following  provision  is deemed as an  addition to the  provisions  of
paragraph 8 (b):

          "In the event such termination  should occur, with less than 12 months
     remaining in the term of employment,  the salary compensation provisions of
     the  within  paragraph  shall be  limited  to the  number of days  actually
     remaining in the term of  employment."

     6. Paragraph 13 (Vacation) is herein amended as follows:

          "Provisions  of  paragraph  13 are  herein  deemed  deleted  in  their
     entirety from the Agreement."

     7.  Upon  the  termination  of  the  within  agreement  for  cause,  or the
expiration  of the term  hereof,  the  Employee  shall resign his position as an
officer of the Employer,  which  resignation shall be effective upon the date of
termination and/or the date of expiration of the term.

     8. Reference is herein made to a certain  "Severance and Release Agreement"
annexed hereto as Exhibit "A".

     Upon the  expiration  of the term  hereof,  the  Employer  and the Employee
herein agree to enter into such "Severance and Release Agreement", the terms and
conditions of which are herein  incorporated  by reference,  with the same force
and effect as if fully set forth herein and executed simultaneously herewith.

     It is specifically understood and agreed that in the event of a termination
of the  Employment  Agreement  for  "cause",  the  said  Severance  and  Release
Agreement shall be deemed a nullity and of no force and effect.

     9. With the exception of the foregoing  provisions of the within agreement,
the terms and conditions of the Employment  Agreement of September 30, 1996, and
the subsequent modification agreements thereto, remain in full force and effect.


     IN WITNESS  WHEREOF,  the parties hereto have set their hands and seals the
day and year first above written.

In the Presence of:
                                                   Manchester Technologies, Inc.




_______________________________________            by:



----------------------------                     ------------------------------
                                                          Joel Stemple


















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